First Data 2007 Annual Report Download - page 199

Chase Paymentech
NOTES TO COMBINED FINANCIAL STATEMENTS – CONTINUED
For the years ended December 31, 2007 and 2006 and
the year ended December 31, 2005 (unaudited)
The following table presents the Company's estimated amortization expense relating to intangible assets as of December 31, 2007, for the following years
ending December 31, (in thousands):
2008 $17,448
2009 13,444
2010 11,989
2011 11,284
2012 9,492
Thereafter 9,291
$72,948
NOTE 8 – FAIR VALUE OF FINANCIAL INSTRUMENTS
Carrying amounts for certain of the Company's financial instruments including cash and cash equivalents, accounts receivable, receivables related to merchant
processing, accounts payable and liabilities related to merchant processing approximate fair value due to their short maturities. COLI policies included in
other assets are recorded at their cash surrender values, which approximate fair value. Accordingly, these instruments are not presented in the following table.
The following table provides carrying amounts and estimated fair values of certain financial instruments (in thousands):
2007 2006
Carrying
amount
Estimated
fair value
Carrying
amount
Estimated
fair value
Marketable securities classified as investments $ 71,772 $ 71,772 $ 133,385 $ 133,385
Current portion of long-term debt — — 16,922 15,956
The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that
value:
Marketable securities classified as investments: These investments are carried at fair value, which is estimated based on quoted market prices.
Current portion of long-term debt: The fair value of the current portion of long-term debt is based on the present value of estimated cash flow for debt service
based on the Company's incremental borrowing rate.
NOTE 9 – MARKETABLE AND OTHER SECURITIES
The Company's investments include marketable securities classified as available-for-sale and carried at fair market value, as well as $2.8 million in non-
marketable equity securities at December 31, 2007 and 2006, accounted for under the cost method. The amortized cost and estimated fair value of available-
for-sale securities, including certain highly liquid securities that are classified as cash equivalents on the combined balance sheets, were as follows for the
dates indicated (in thousands):
At December 31, 2007
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Debt securities:
U.S. Government obligations $ 5,035 $ 85 $ (1) $ 5,119
Government agency obligations 9,825 104 (43) 9,886
Corporate obligations 25,310 23 (222) 25,111
Mutual funds 47,693 525 — 48,218
Total $ 87,863 $ 737 $ (266) $ 88,334
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